The news that the concept of Lithium extraction from the Salt Lake has changed to boost the government of the Tibet City Investment Limited Autonomous region may be an inducement. [hot stocks]

SMM: recently, although the field of lithium electricity seems to be very good, good news continues, and the prices of lithium salts led by lithium carbonate are also rising, but the trend of lithium-related stock index is quite twists and turns, and even at one point there was a strong bullish mood in the market, but lithium-related stocks "fell endlessly". Following the weakening of the shock of the previous trading day, today's salt lake lithium plate ushered in a new wave of abnormal pull. The salt lake lithium extraction index rose rapidly at around 10:00, with trading in Tibet rising by the daily limit, followed by Tibet Mining, Mount Qomolangma, Jinyuan shares and Tianqi Lithium Industry, up more than 3 per cent.

On the news side, at the fifth session of the 11th people's Congress of the Tibet Autonomous region held a few days ago, it was mentioned that during the 14th five-year Plan period, Tibet planned to invest 601.5 billion yuan, an increase of 58 percent over the 13th five-year Plan. The market predicts that the salt lake in Tibet may be included in key construction projects. Previously, Tibet Mining mentioned in the record sheet of investor relations activities that the government of the Tibet Autonomous region actively supported the company's salt lake development and hoped that the development of Zabuye Salt Lake would be used as a benchmark project to promote the construction of the "Lithium City" in Xigaze.

From this point of view, Tibet's 14th five-year Plan may be good for lithium extraction from salt lakes, but some industry insiders say that apart from imperfect infrastructure, technical problems are the main problems hindering the development of lithium extraction from salt lakes. With regard to market speculation about Tibet's 14th five-year Plan, personnel related to Tibet City Investment said on January 7 that it had not yet received relevant notice about Tibet's 14th five-year Plan to invest in Tibet's salt lakes, and the company's lithium carbonate production capacity was still under planning.

However, even so, many people in the industry still firmly believe that Qinghai and Tibet, as a major province of salt lake resources in China, under the rapidly rising status of the lithium industry and various opportunities brought about by policies, Tibet's salt lake will most likely be included in key construction projects. This can also be seen in the information previously disclosed by the Tibetan Mining Industry.

According to statistics, the main salt lakes planned or produced in Tibet are Zabuye Salt Lake, Ali Longmu Co and Geze Chaka Salt Lake, among which Zabuye Salt Lake has the best resource endowment. Tibet Mining directly holds a 50.72% stake in Xigaze Zabuye Lithium Company, which is the main body of the project, while Ali Longmu Co and Jieze Chaka Salt Lake belong to Tibet Chengtou.

However, relevant people from Tibet City Investment said that if the Tibet Salt Lake is included in the key construction projects of Tibet's 14th five-year Plan, it will undoubtedly promote the development of Tibet Salt Lake, but large-scale development still depends on the breakthrough of salt lake lithium extraction technology, and can focus on the production capacity construction and slope climbing process of planned projects.

It is reported that the EPC+O contract for Tibet Mining's second phase of 12000 tons of lithium carbonate project has entered preliminary preparatory work and is expected to start in April 2022 and put into production in September 2023. According to the spot price of SMM, as of January 7, the average spot price of domestic battery-grade lithium carbonate has successfully exceeded 300000 to 302000 yuan / ton, an increase of 439.29% over the same period in 2021.

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SMM research shows that the current downstream stock situation is not optimistic, and it is expected that inquiry and procurement demand will continue. At the end of January, some downstream manufacturers may passively reduce production due to the shortage of lithium carbonate raw materials. After the Spring Festival, due to the poor stock preparation of enterprises in February-March, it is expected that the price of lithium carbonate will not be as stable or falling as in previous years. "View details